Dollar Fixated

Discussion in 'Forex' started by oldtime, Nov 28, 2012.

  1. Somebody finally turned me on how to set up overlay charts on TWS. It's really quite depressing. Nothing is moving independently anymore. Dollar goes up, everything else goes down. Dollar goes down, everything goes up.

    Not only that, you really have to keep your eye on gold these days.

    at anyrate, so goes usd, so goes everything else.

    It cracks me up when these guys say they are trading EUR/USD, when all they are really trading is USD.
  2. clacy


    This is true. The US (and the rest of the world for that matter because they are tied to us via reserve currency), are trapped in a reflation/deflation scenario currently.

    When things don't look good, everyone is flocking to $USD, treasuries, etc. When the worry fades, the liquidity-based reflation trade is on and money flows into stocks, RE, gold, oil, Euro, junk bonds, etc.

    It looks like one big correlated trade right now but what do I know.
  3. Are you surprised? It is not what one should expect (it does not mean the alphas are correlated).
  4. yes, I made very good money last summer, nothing more than short EUR/AUD, over and over again. add to winners, take profits, repeat. Had nothing to do with USD.
  5. How did you know about that pair, and what tools did you use to get in and out?
  6. I traded a lot of pairs, that was just the one that stood out from all the rest
  7. at anyrate, I like talking about forex. It's all new to me. Been trading it just over a year.

    went into the weekend

    short aud.usd
    long eur.usd
    long gbp.usd
    long usd.cad


    so that's the same as being long EUR/AUD and EUR/CAD

    and long GBP/AUD and GBP/CAD

    I'd like to get short that usd, and for that matter wouldn't mind getting short eur.

    but I got directional the first week of November and just got my head handed to me. I mean it was bad. Took me two weeks to get everything back to what got me here. Finally on Nov 30, I went profitable, like 1% for the month.

    I have high hopes for this position and just plan on holding it all through December. Buy it when it's down and sell it when it's up.

    never wrong, often early, and I know that's what I was on USD.
  8. dev


    Assuming that's true, perhaps that's important information.. not going to expand on that though.

    It cracks me up that people will have a love affair with eurusd (or love affair anything else for that matter) even when that may not be the pair to trade right now, not by a long shot. :eek:

    Each to their own however, I realise intraday has enough noise to keep the chippety-chop machine rolling.. chop-slice-chop-slice :D
  9. dev


    Pair. An interesting word that requires more thought. Something 99.9% of fx traders won't do..

    pair (pâr)
    n. pl. pair or pairs
    1. Two corresponding persons or items, similar in form or function and matched or associated: a pair of shoes.
    2. One object composed of two joined, similar parts that are dependent upon each other: a pair of pliers.
    a. Two persons who are married, engaged, or dating.
    b. Two persons who have something in common and are considered together: a pair of hunters.
    c. Two mated animals.
    d. Two animals joined together in work.
    4. Games Two playing cards of the same denomination.
    5. Two members of a deliberative body with opposing opinions on a given issue who agree to abstain from voting on the issue, thereby offsetting each other.
    6. Chemistry An electron pair.
    v. paired, pair·ing, pairs
    1. To arrange in sets of two; couple.
    2. To join in a pair; mate.
    3. To provide a partner for.
    1. To form pairs or a pair.
    2. To join in marriage; mate.
    [Middle English, from Old French paire, from Latin paria, equals, pl. of pr, a pair, from pr, equal; see per-2 in Indo-European roots.]
    Usage Note: The noun pair can be followed by a singular or plural verb. The singular is always used when pair denotes the set taken as a single entity: This pair of shoes is on sale. A plural verb is used when the members are considered as individuals: The pair are working more harmoniously now. After a number other than one, pair itself can be either singular or plural, but the plural is now more common: She bought six pairs (or pair) of stockings.

    I'm being helpful there by the way! :)
  10. yes, very helpful, like if a guy wanted to get short USD, what would he do?

    My first attempt was a total disaster. I just went short USD against everything. I lost more in the first week of November than I made in all of October. And October was a very good month for me.

    Maybe I'll get it one of these days. Until then, I'm about as neutral as you can get on usd, and will just play everything else off one against the other, since they all seem to be moving with it.
    #10     Dec 2, 2012